Global Sourcing. Procurement in China

Bachelor Thesis from the year 2005 in the subject Business economics - Supply, Production, Logistics, grade: 1,7, Kiel University of Applied Sciences, language: English, abstract: The matter of China Sourcing is at present being given little or medium-level priority by many companies. This however is not consistent with the potential which this matter offers with reference to procurement costs and consequently one¿s own competitive position. In the near future China will advance to become the procurement market par excellence. Today, it already has a large supply base, which in the next few years will lead to China developing into one of the most aggressive competitors in the world. This will lead to an increase in procurement from China.

However, it is misplaced to rush into the ¿adventure¿ of procurement in China. Thorough preparation is necessary to be successful in the Chinese market. Procurement in China does not only offer opportunities but it is afflicted by risks and problems. The focus of this book is directed towards 5 important problem areas: a lack of market transparency, difficulty in establishing contacts, underdeveloped logistics infrastructure, a lack of product quality, unusual negotiating strategies. The reader is made sensitive to these problem areas. At the same time, it provides practical advice to overcome these problems and gives purchasers useful information and hints in practical business situations.

This guide is aimed at purchasing managers in production companies who have not yet had experience of dealing with or in China and who would like to start.